Structured Finance

What it is:

Structured finance is a complex financial instrument offered to borrowers with unique and sophisticated needs. Generally, a simple loanwill not suffice for the borrower so these more complex and risky finance instruments are implemented.

How it works (Example):

In many cases, the needs of a large borrower involve the execution of a series of discrete transactions as dictated by operational needs. This cannot be accomplished with a mere loan.

Why it Matters:

Structured financial products are not offered by all lenders and, in almost all cases, are not transferable between other types of debt in the same way as a straightforward loan. They are usually only offered to large borrowers needing a vast injection of capital or another source of income.

CONTENT LIBRARY

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